Secure the property now or wait?

Hello everyone!

Our username is Programm. My wife and I want to fulfill the dream of owning our own home, probably in the year 2014.
Now we face the following challenge;
We fell in love today! And that is with the "Landstadt - Gatow" area in Berlin Spandau! From our point of view, it is simply the ideal place to live. Quick to get to Berlin city, quick to Potsdam, close to the water, newly developed area with two super stylish schools and just idyllic :-) For us it is clear; we want to live there.
The good thing; you can buy a plot directly from the federal government (it is federal property, the area was used by the British forces until '90). We would have the necessary cash if we sell an inherited plot (which is far away from Berlin). It almost matches; the parcels are priced at around +/- 100k and that is roughly the price we could get for our plot, a potential buyer is already present.
So far so good.
Now comes the BUT, and why we want/can only build in 2014.
Our professional situation is that we both finished our studies this year and are currently trainee teachers. This means our current income is about 2000€ net per month. From our point of view, that is not enough yet to take out a loan. We plan to borrow around 120,000.
I also don’t think any bank would lend us money today since we are still trainees.
Therefore, building only in 2014.
Our question; is it generally worthwhile to buy a plot now and take money from the bank in 2-3 years or would you leave everything as it is and only start once you have a permanent job?
The question aims at; how long does such a transaction take with all the formal stuff? Notary etc.
Would the bank count a lien-free plot "fully" as equity? Or should we rather buy everything from one source, for example from a prefabricated house company?
And lastly; do you consider 120,000 realistic for a house (about 4-5 rooms, simply designed)? What advantage/disadvantage (besides securing the dream plot) would there be if we, for example, already buy the plot next year?

Thanks in advance for the answers!

Regarding your financial capacity, you are currently limited. I assume that a reputable credit institution would advise you against financing or that you will be offered interest rates with a high risk surcharge on a first-ranking mortgage on the inherited property. I recommend the risk-free approach of first selling the inherited property and using the proceeds to purchase the dream property. When acquiring the new building, you should reconsider your price expectations. It is definitely not possible to build a house with 4-5 rooms and at least 130 m² of living space for 120,000 euros without significant personal contribution. Contact providers and have them make offers in that range. Regards T.H.

I have a similar situation and I am particularly interested in the advantages/disadvantages as well as any possible conditions. Is it possible to buy a plot of land now and build only in 2 years without any problems? Are there ongoing costs besides property tax?

Is it possible without any problems to buy a plot now and only build in 2 years?

Yes, there is nothing that generally opposes this.
Of course, there are always exotic individual cases. In our contract, it was stated that construction must begin within 2 years after acquisition. This is a common regulation in new development areas.

Are there ongoing costs besides the property tax?

I cannot think of any other ongoing costs.
But again, there are special individual cases that may result from the contract or neighborhood or municipal law. For example, the maintenance of the building land can be stipulated in the purchase contract.

Regards

T.H.

What I would like to point out. It can make sense to submit a [Bauvoranfrage] before purchase. If there are any construction obstacles, these would be communicated by the building authority in that way.

It also makes sense to apply for a legally binding building permit once the planning is finalized. A building permit procedure can sometimes take a long time in special cases, and an early building application gives you time.

Regards

T.H.

Thanks for the answers! We understand that we’re not building yet. But a traineeship eventually comes to an end and then the financial situation (hopefully :-) ) changes almost overnight. But, see; building permit! I hadn’t even thought of that. Such a process can also drag on. And in 2 years we’ll already be earning a living, and by then we could already start dealing with selling the one and buying the new plot of land. Just a question; how long did it take on average for you until you moved into your little house? I mean from the moment you decided on a plot/house until the moving truck actually rolled up? Because we currently only have a tiny apartment and we want to "expand" soon, hehe.... Cheers!